The United States has announced that it will provide a $100 million fund to propel Pakistani SMEs for investment, which provide a large number of jobs and make a significant contribution to the economy, through the Pakistan Private Investment Initiative.
Addressing the launch ceremony Pakistan Private Investment Initiative, US Ambassador David Hale said that the investment would be made in partnership with the Abraaj Group, Indus Basin Holding and JS Private Equity Management.
The initiative comprises three professionally managed investment funds that will provide equity capital for Pakistan’s dynamic and fast growing small and medium businesses.
The US Agency for International Development (USAID) has given $24 million for each fund and the Abraaj Group, Indus Basin Holding and JS Private Equity Management will each match or provide more than USAID’s contribution.
They want to improve credit for first-time borrowers to breakdown barriers for creators and innovators who will find solutions to the development challenges facing Pakistan and the world, believing that investment in entrepreneurs would pay dividends for the decades to come.
He added that Pakistan is making progress in economy and investor confidence is increasing for investment and private sector investment is very important for Pakistan.
He noted that the government of Pakistan had achieved significant goals, especially in economy, energy and access to education and finance.
USAID Mission Director John Groarke said the investment initiative marked the beginning of a new era of bilateral cooperation as the economy of Pakistan was growing but space was not enough for creating jobs.
“We know the future of economic growth rests on private sector investment and Pakistani companies will be able to get access to finance for expanding their businesses and creating thousands of jobs that are needed,” he said.
Securities and Exchange Commission of Pakistan Chairman Zafar Hijazi spoke about the regulatory framework that had been put in place for investment by private sector companies.
The circumstances are ideal for private sector investment in the SMEs and adding small and medium business units were important for creating jobs and had also brought real profits for investors.
State Bank of Pakistan Deputy Governor Saeed Ahmad termed SMEs the backbone of every economy that could provide job opportunities. “SMEs face shortage of expertise as well as lean budges but despite that, they are a success story,” he remarked.
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